Wag! Group Co (PET) 2023 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Wag! first-quarter 2023 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到搖擺！ 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Dawn Francfort from ICR.

我現在想把會議交給今天的演講者，來自 ICR 的 Dawn Francfort。

Good afternoon, everyone, and thank you for joining Wag!'s conference call to discuss our first-quarter 2023 financial results. On the call today are Garrett Smallwood, Chief Executive Officer and Chairman; Adam Storm, President and Chief Product Officer; and Alec Davidian, Chief Financial Officer.

大家下午好，感謝您參加 Wag! 的電話會議，討論我們 2023 年第一季度的財務業績。今天的電話會議是首席執行官兼董事長 Garrett Smallwood； Adam Storm，總裁兼首席產品官；和首席財務官 Alec Davidian。

Before we get started, please note that today's comments include forward-looking statements. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to differ materially from those expressed or implied by such statements. A discussion of these risks and uncertainties are included in our SEC filings.

在我們開始之前，請注意今天的評論包含前瞻性陳述。這些前瞻性陳述受風險和不確定因素的影響，並且涉及可能導致實際結果與此類陳述明示或暗示的結果存在重大差異的因素。我們向美國證券交易委員會提交的文件中包含對這些風險和不確定性的討論。

Also, during the call, we may present both GAAP and non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release, which we issued today.

此外，在電話會議期間，我們可能會同時介紹 GAAP 和非 GAAP 財務指標。我們今天發布的收益報告中提供了與最直接可比的 GAAP 財務指標的調節。

The earnings release is available on the Investor Relations page of our website and is included as an exhibit in the Form 8-K furnished to the SEC. Lastly, you can find our earnings presentation posted on our IR website and with the SEC.

收益發布可在我們網站的投資者關係頁面上找到，並作為附件包含在提交給美國證券交易委員會的 8-K 表格中。最後，您可以在我們的 IR 網站和 SEC 上找到我們發布的收益演示文稿。

And with that, let me turn the call over to Garrett.

有了這個，讓我把電話轉給加勒特。

Thanks, Dawn. Good afternoon, everyone, and thanks for joining us to discuss our first-quarter 2023 performance.

謝謝，黎明。大家下午好，感謝您加入我們討論我們 2023 年第一季度的業績。

Wag! delivered another quarter of impressive topline growth ahead of our expectations. We are broadening our reach as a go-to, non-discretionary, consumer premium pet care platform, transforming the pet industry by becoming an all-inclusive trusted partner for the premium pet parent. Our team is capitalizing on the secular growth in pet ownership, and we are just getting started in providing an ever-expanding array of products and services to our pet parents.

搖擺！超出我們預期的又一個季度實現了令人印象深刻的營收增長。我們正在擴大我們作為一個首選的、非全權委託的、消費者優質寵物護理平台的範圍，通過成為優質寵物父母的包羅萬象的值得信賴的合作夥伴來改變寵物行業。我們的團隊正在利用寵物擁有量的長期增長，我們才剛剛開始為我們的寵物父母提供不斷擴大的產品和服務。

I will begin today by giving a high-level summary of our first-quarter financial results before Adam, our President and Chief Product Officer, gives an update on our strategy and key initiatives for 2023. Alec, our Chief Financial Officer, will close out with a more detailed overview of our first-quarter 2023 results, our capital allocation priorities, and our guidance for 2023, both revenue and adjusted EBITDA, both of which we are raising today.

今天，我將首先對我們的第一季度財務業績進行高級總結，然後我們的總裁兼首席產品官 Adam 將介紹我們 2023 年的戰略和關鍵舉措的最新情況。我們的首席財務官 Alec 將結束更詳細地概述了我們 2023 年第一季度的業績、我們的資本分配優先事項和我們對 2023 年的指導，包括我們今天提出的收入和調整後的 EBITDA。

Wag! exists to make pet ownership possible and to be the trusted partner in your pet's journey from puppy to senior daily to annually. By growing our footprint in all corners of the pet care market, we are ensuring Wag! is there for pet parents every step of the way. We accomplished this by focusing on disciplined growth, as seen by our performance in the first quarter of 2023.

搖擺！存在是為了讓寵物擁有成為可能，並成為您的寵物從小狗到老年到每年的旅程中值得信賴的伙伴。通過在寵物護理市場的各個角落擴大我們的足跡，我們確保 Wag!是否為寵物父母提供每一步。正如我們在 2023 年第一季度的業績所示，我們通過專注於有紀律的增長來實現這一目標。

We are thrilled by our ability to integrate new assets into the Wag! Platform, and not only add value to our business, but also to the pet parents, as demonstrated by the acquisition of dogfoodadvisor.com and our entrance into the $62.7 billion pet food and treat category. This acquisition is just one example of how we are introducing our community to other valuable assets.

我們很高興能夠將新資產整合到 Wag 中！平台，不僅為我們的業務增加價值，也為寵物父母增加價值，正如收購 dogfoodadvisor.com 和我們進入價值 627 億美元的寵物食品和零食類別所證明的那樣。此次收購只是我們如何向社區介紹其他有價值資產的一個例子。

We are excited about our entry into the dog food category as it is the largest growing pet care category in terms of TAM, demonstrating how we are proactively managing and recycling our capital to maximize shareholder returns.

我們很高興進入狗糧類別，因為它是 TAM 增長最大的寵物護理類別，展示了我們如何積極管理和回收我們的資本以最大限度地提高股東回報。

In the first quarter, we saw continued momentum across the business and achieved record revenue of $20.6 million, up 113% year over year, including pet food and treats. Our adjusted EBITDA loss was $0.4 million from a $2.6 million (sic - $2.1 million) loss in the same period last year. We are proud to say that this quarter marks a milestone revenue run rate for Wag!, and we are now projecting EBITDA profitability for fiscal year 2023.

第一季度，我們看到了整個業務的持續發展勢頭，實現了創紀錄的 2060 萬美元收入，同比增長 113%，其中包括寵物食品和零食。我們調整後的 EBITDA 虧損為 40 萬美元，而去年同期為 260 萬美元（原文如此 - 210 萬美元）。我們可以自豪地說，本季度標誌著 Wag! 的里程碑式收入運行率，我們現在預測 2023 財年的 EBITDA 盈利能力。

Our focus remains on striking a sustainable balance of growth, margin, and profit especially considering the ever-developing macroeconomic backdrop. During the quarter, platform participants increased to 611,000, an increase of 88% year over year, and Wag! Premium penetration increased to 55%, significantly ahead of expectations even at the fully rolled out $14.99 new member price point.

我們的重點仍然是在增長、利潤和利潤之間取得可持續的平衡，尤其是考慮到不斷發展的宏觀經濟背景。本季度，平台參與者增至 611,000 人，同比增長 88%，Wag!高級滲透率增加到 55%，即使在完全推出 14.99 美元的新會員價位時也大大超出預期。

Taking a step back, approximately 70% of US households own a pet in 2023. And of those, we specifically target the premium pet parents or roughly the 15% of pet households in the current market with a proven propensity toward premiumization across pet categories.

退一步說，到 2023 年，大約 70% 的美國家庭擁有一隻寵物。其中，我們專門針對高端寵物父母或當前市場上大約 15% 的寵物家庭，這些家庭被證明有跨寵物類別的高端化傾向。

In Q4 2022, we tested Wag! Premium pricing, resulting in a price increase for new pet parents from $9.99 to $14.99 per month, illustrating the resilience of our premium business in a tough macroeconomic backdrop. Although we saw continued growth in Wag! Premium in Q1, exceeding expectations, we faced headwinds in our services business due to severe storms and rain across California and the coastlines. Despite the headwinds due to inclement weather, we continue to believe that pet parents are planning to utilize Wag! services as they return to office and weather returns to normal in some of our largest and most penetrated markets. This belief is rooted in the fact that premium penetration grew in the face of service softness, demonstrating pet parents' intention to use our products when the need arises.

2022 年第四季度，我們測試了 Wag！保費定價，導致新寵物父母的價格從每月 9.99 美元增加到 14.99 美元，說明我們的保費業務在艱難的宏觀經濟背景下的彈性。儘管我們看到 Wag! 的持續增長！第一季度的溢價超出預期，由於加利福尼亞州和海岸線的嚴重風暴和降雨，我們的服務業務面臨逆風。儘管惡劣天氣帶來不利影響，但我們仍然相信寵物父母正計劃使用 Wag！在我們一些最大和滲透率最高的市場中，隨著他們返回辦公室和天氣恢復正常，我們的服務也將恢復正常。這種信念植根於這樣一個事實，即保費滲透率在服務疲軟的情況下增長，表明寵物父母有意在需要時使用我們的產品。

Next, we recognized seasonal tailwinds in our wellness business as a result of pet adoptions in Q4 2022, which pulled forward demand for pet insurance and wellness plans. On that note, we are thrilled to announce the addition of pawprotect.com to our suite of wellness products. Wag! is now the exclusive marketing partner of Paw Protect, the only pet insurance plan with instant pay. Paw Protect is the only brand in America to offer each customer an interest-free, fee-free, and credit check-free line of credit to cover veterinary bills. We have successfully integrated Paw Protect into the pet and pet insurance marketplace, which powers brands such as Forbes and US News.

接下來，由於 2022 年第四季度寵物收養，我們認識到我們健康業務的季節性順風，這推動了對寵物保險和健康計劃的需求。在這一點上，我們很高興地宣布將 pawprotect.com 添加到我們的健康產品套件中。搖擺！現在是 Paw Protect 的獨家營銷合作夥伴，這是唯一一款即時支付的寵物保險計劃。 Paw Protect 是美國唯一一個為每位客戶提供免息、免手續費和免信用檢查的信用額度以支付獸醫賬單的品牌。我們已成功將 Paw Protect 整合到寵物和寵物保險市場，該市場為福布斯和美國新聞等品牌提供支持。

In the first quarter, we saw an LTV to CAC ratio of 6 to 1, demonstrating our continued operational excellence and efficiency. Organic user acquisition rate was 70%, which is a result of focus on the pet parent and pet caregiver experience, thoughtful virality and referral campaigns, and strategic partnerships. We remain excited about our ability to thoughtfully integrate and support pet parents throughout their pet's life through our new partnerships and initiatives.

在第一季度，我們看到 LTV 與 CAC 的比率為 6 比 1，表明我們持續的卓越運營和效率。有機用戶獲取率為 70%，這是對寵物父母和寵物護理人員體驗的關注、周到的病毒式傳播和推薦活動以及戰略合作夥伴關係的結果。通過我們新的合作夥伴關係和舉措，我們對能夠在寵物父母的整個生命過程中深思熟慮地整合和支持他們的寵物父母感到興奮。

Briefly touching on the supply side, we maintain supply and demand equilibrium through a variable platform fee, which averaged $53.17 in Q1 2023. As we have stated in the past, we believe that Wag! is the best gig in America even in a tough macroeconomic environment. Despite softening macroeconomic conditions, the demand to be a caregiver in our community is as strong as ever. And we believe more and more pet lovers will turn to being a pet caregiver with Wag! to relieve a little stress, get some sunshine, and hang out with some cute pups.

簡要談談供應方面，我們通過可變平台費用維持供需平衡，2023 年第一季度平均費用為 53.17 美元。正如我們過去所說，我們相信 Wag！即使在艱難的宏觀經濟環境下，也是美國最好的演出。儘管宏觀經濟狀況疲軟，但我們社區對看護人的需求一如既往地強烈。我們相信越來越多的寵物愛好者會轉而成為 Wag 的寵物護理員！減輕一點壓力，曬曬太陽，和一些可愛的小狗出去玩。

To summarize, I want to highlight my excitement for all that Wag! has accomplished this quarter and since we've been public. Our financial results demonstrate the effectiveness of our strategy and the benefits of continued investment in our current product offering. Our success underscores our capability to scale our business across multiple markets within the pet industry, driven by the inherent cross-sell opportunities generated by our platform, and we are committed to profitable growth for the remainder of 2023.

總而言之，我想強調一下我對所有 Wag 的興奮！自從我們公開以來，本季度已經完成。我們的財務業績證明了我們戰略的有效性以及持續投資於我們當前產品的好處。我們的成功凸顯了我們在平台產生的固有交叉銷售機會的推動下，有能力在寵物行業的多個市場擴展我們的業務，我們致力於在 2023 年剩餘時間內實現盈利增長。

Please refer to our updated management presentation for more color on the success of our business and how far we have come in just four short quarters. With real-time insight into consumer trends, we are leaning into the fastest-growing secular categories within the premium pet care market, propelling our growth well ahead of the projections we put forward during our go-public process at the end of 2021. As you'll see, we have been able to scale our platform faster and more profitably than anticipated and well ahead of external expectations.

請參閱我們更新的管理演示文稿，了解更多關於我們業務成功的顏色以及我們在短短四個季度內取得的進展。憑藉對消費者趨勢的實時洞察，我們正轉向高端寵物護理市場中增長最快的長期類別，推動我們的增長遠遠超過我們在 2021 年底上市過程中提出的預測。你會看到，我們已經能夠比預期更快、更有利地擴展我們的平台，並且遠遠超過外部預期。

And with that, I will turn the call over to Adam Storm, to provide additional insights in our strategy.

有了這個，我將把電話轉給 Adam Storm，為我們的戰略提供更多見解。

Thanks, Garrett. I will now walk through the five top-level elements of our 2023 strategy, driving long-term shareholder value and profitable growth.

謝謝，加勒特。我現在將介紹我們 2023 年戰略的五個頂級要素，推動長期股東價值和盈利增長。

One, accelerate growth in existing markets; two, expand premium subscription offerings; three, platform expansion; four, opportunistic M&A; and five, operating scale. Coming off a strong year in 2022, this quarter showed an acceleration of growth in existing markets capitalizing on the return to office trend and post-pandemic return to normal. The Kastle back-to-work barometer remained steady, hovering just below 50%.

第一，加快現有市場的增長；二、擴大高級訂閱服務；三、平台拓展；四、機會型併購；五、經營規模。在 2022 年表現強勁之後，本季度顯示出利用重返辦公室趨勢和大流行後恢復正常的現有市場的加速增長。 Kastle 返工晴雨表保持穩定，徘徊在略低於 50% 的水平。

We believe the back-to-work trend will continue slowly but surely as individuals return to the office due to labor market pressures. We believe the demand for high-quality, personalized pet care far exceeds the existing market given the increased rate of pet adoption and increased spend per pet. As Garrett mentioned, we saw positive seasonality and significant growth in our wellness business in Q1 as a result of outsized pet adoptions in Q4 of 2022. As a result, we now have two types of seasonality in the business, travel and pet adoptions.

我們認為，隨著個人因勞動力市場壓力重返辦公室，重返工作崗位的趨勢將緩慢但肯定會持續下去。我們認為，鑑於寵物收養率的提高和每隻寵物的支出增加，對高質量、個性化寵物護理的需求遠遠超過現有市場。正如 Garrett 所提到的，由於 2022 年第四季度寵物收養量過大，我們在第一季度看到了積極的季節性和我們健康業務的顯著增長。因此，我們現在在業務、旅行和寵物收養方面有兩種類型的季節性。

Further, the trend in the humanization of pets is gaining traction, as Millennials and Gen Z increasingly consider the needs of their pets to be just as important as those of the rest of the family.

此外，寵物人性化的趨勢越來越受到關注，因為千禧一代和 Z 世代越來越認為他們的寵物的需求與其他家庭成員的需求一樣重要。

Moving on to our premium subscription penetration. In 2022, we hit our long-term target of 50% penetration due to the success of our second growth driver, expanding subscription offerings. As a refresher, Wag! premium subscribers receive a 10% discount on all services, VIP customer support, unlimited 24/7 expert pet advice, and exclusive partner offers, all of which drive customer satisfaction and retention and their willingness to purchase our expanding set of products and services.

繼續我們的高級訂閱滲透。到 2022 年，由於我們的第二個增長動力——擴大訂閱服務——取得成功，我們實現了 50% 滲透率的長期目標。作為複習，Wag！高級訂戶可享受所有服務的 10% 折扣、VIP 客戶支持、無限的 24/7 專家寵物建議和獨家合作夥伴優惠，所有這些都提高了客戶滿意度和保留率，以及他們購買我們不斷擴展的產品和服務的意願。

This quarter, we've expanded our offerings to include lifesaving recall alerts from our partner at Dog Food Advisor and 50% off your first box of Farmer's Dog premium pet food subscription. Our premium penetration at 55% came in far ahead of plan even at the increased price of $14.99 per month, as a result of the ever-increasing value of the bundle. We will continue to focus on increasing the value of the Wag! Premium subscription for every member through additional benefits, partnerships, and offers.

本季度，我們擴大了我們的產品範圍，包括來自我們的合作夥伴 Dog Food Advisor 的救生召回警報，以及 Farmer's Dog 高級寵物食品訂閱第一盒 50% 的折扣。由於捆綁包的價值不斷增加，即使價格上漲至每月 14.99 美元，我們 55% 的保費滲透率也遠遠超出了計劃。我們將繼續專注於增加 Wag 的價值！通過額外的好處、合作夥伴關係和優惠為每個成員提供高級訂閱。

Third, we remain focused on platform expansion and diversifying the products and services within the platform, including new features such as the launch of service extensions for pet caregiver who are having a great time on a walk or drop-in service and extend the service real time for 20 or 30 minutes. This drives increased AOV, LCV, and pup happiness.

第三，我們仍然專注於平台擴展和平台內產品和服務的多樣化，包括新功能，例如為寵物護理人員推出服務擴展，他們在散步或上門服務時玩得很開心，並將服務擴展到真實時間為 20 或 30 分鐘。這會增加 AOV、LCV 和幼犬的幸福感。

In the back half of 2023, we're excited to begin testing pet caregiver samples where pet caregivers working with top brands can provide pet parents and their pups customized treats, foods, and vitamins for purchase through the Wag! app. Growing the marketplace through thoughtful product development and expanding the set of services available through our platform is integral to our growth plan in 2023.

在 2023 年下半年，我們很高興開始測試寵物護理人員樣本，與頂級品牌合作的寵物護理人員可以為寵物父母和他們的幼犬提供定制的零食、食物和維生素，以便通過 Wag 購買！應用程序。通過深思熟慮的產品開發和擴大通過我們平台提供的服務集來發展市場是我們 2023 年增長計劃不可或缺的一部分。

Fourth, we plan to prioritize growth through opportunistic M&A as we did in 2022. Wag! is strategically positioned to capitalize on pet specific M&A as a function of our deep understanding of the consumer and our technology-first DNA, which allows us to rapidly integrate and expand our platform.

第四，我們計劃像我們在 2022 年所做的那樣，通過機會主義併購來優先考慮增長。搖擺！由於我們對消費者的深刻理解和我們技術第一的 DNA，我們的戰略定位是利用寵物特定的併購，這使我們能夠快速整合和擴展我們的平台。

In early April, we acquired Maxbone, a top-tier digital platform for modern pet essentials. The Aqua HAI expands Wag!'s reach into the pet supplies market and deepens our commitment to the needs and standards of the premium pet care. In addition, this improves our ability to thoughtfully curate the Wag! brand through pet caregiver apparel and collaborations.

4 月初，我們收購了現代寵物必需品的頂級數字平台 Maxbone。 Aqua HAI 擴大了 Wag! 進入寵物用品市場的範圍，並加深了我們對優質寵物護理需求和標準的承諾。此外，這提高了我們精心策劃 Wag 的能力！通過寵物護理服裝和合作品牌。

The final element of our strategy is operating scale, which I will briefly touch on and Alec will expand on. Our unit economics and fixed cost operating leverage drove operating margin improvements across the board this quarter. Adjusted EBITDA margin improved from minus 22% to minus 2% year over year at 20 percentage point improvement.

我們戰略的最後一個要素是經營規模，我將簡要介紹這一點，Alec 將進一步展開。本季度，我們的單位經濟效益和固定成本運營槓桿推動了運營利潤率的全面提高。調整後的 EBITDA 利潤率從負 22% 同比提高 20 個百分點至負 2%。

As Garrett mentioned, we're now intensely focused on positive adjusted EBITDA margin for the remainder of 2023, which we'll achieve through efficient marketing payback cycles, continued operational excellence, platform integrations and cross-sell, and best-in-class customer experience.

正如 Garrett 所提到的，我們現在非常關注 2023 年剩餘時間內調整後的 EBITDA 利潤率，我們將通過高效的營銷回報週期、持續的卓越運營、平台集成和交叉銷售以及一流的客戶來實現這一目標經驗。

I will now turn the call over to Alec to discuss our financials in more detail. Alec?

我現在將電話轉給亞歷克，以更詳細地討論我們的財務狀況。亞歷克？

Thank you, Adam, and thank you, everyone, for joining our first-quarter '23 earnings call.

謝謝亞當，也謝謝大家參加我們 23 年第一季度的財報電話會議。

It has been an excellent start to the year with growth outpacing our expectations through our three diversified revenue streams, putting us on a path to achieve profitability this year. I'll begin with our review of the first-quarter '23 financial results followed by our '23 guidance, which we are raising to-date.

今年是一個良好的開端，通過我們三個多元化的收入來源，增長超出了我們的預期，使我們走上了今年實現盈利的道路。我將從我們對 23 年第一季度財務業績的審查開始，然後是我們迄今為止提出的 23 年指導方針。

Q1 '23 was another new record quarter for us with revenue of $20.6 million, up 113% from Q1 2022, including pet food and treats revenue that was a new revenue stream for us this quarter. Adjusted EBITDA loss for the quarter improved $0.4 million compared to $2.1 million in Q1 '22 ahead of expectations.

23 年第一季度是我們又一個創紀錄的季度，收入為 2060 萬美元，比 2022 年第一季度增長 113%，其中寵物食品和零食收入是我們本季度的新收入來源。與 22 年第一季度的 210 萬美元相比，本季度調整後的 EBITDA 虧損減少了 40 萬美元，超出預期。

We have, in effect, doubled the business in the space of 12 months while reducing our adjusted EBITDA loss by 85%. Our continued acceleration is the outcome of our commitment to disciplined growth, our ability to expand our platform to own the entire pet life cycle and continue product innovation. As awareness of pet wellness offerings in the US evolves, we see a long runway for pet wellness offerings.

實際上，我們在 12 個月內將業務翻了一番，同時將調整後的 EBITDA 損失減少了 85%。我們的持續加速是我們致力於有紀律的增長、我們擴展平台以擁有整個寵物生命週期和持續產品創新的能力的結果。隨著美國對寵物健康產品意識的發展，我們看到了寵物健康產品的長跑道。

As a reminder, pet insurance penetration in the United States is less than 4% versus well over 20% in the UK. Our wellness offerings are comprised of wellness plans, a pet insurance comparison marketplace, and pet prescription software growing from $5.2 million in Q1 '22 to $13.9 million this quarter. We continue to add new insurance providers to the pet insurance comparison marketplace, which is available to pet parents through well-known brands such as Forbes, Tractor Supply, US News, and many more.

提醒一下，美國的寵物保險滲透率不到 4%，而英國則超過 20%。我們的健康產品包括健康計劃、寵物保險比較市場和寵物處方軟件，從 22 年第一季度的 520 萬美元增長到本季度的 1390 萬美元。我們繼續向寵物保險比較市場添加新的保險提供商，寵物父母可以通過 Forbes、Tractor Supply、US News 等知名品牌購買。

In Q1, we added the Paw Protect brand to our insurance comparison marketplace and are the exclusive distributors of this differentiated insurance product. Service revenue grew from $4.4 million during Q1 last year to $5.4 million this quarter as we have seen a steady increase in workers returning to the office and increased travel versus a year ago. Finally, for Q1, our newly acquired Dog Food Advisor contributed $1.4 million of revenue through our third revenue stream pet food and treats

在第一季度，我們將 Paw Protect 品牌添加到我們的保險比較市場，並且是這種差異化保險產品的獨家經銷商。服務收入從去年第一季度的 440 萬美元增長到本季度的 540 萬美元，因為與一年前相比，我們看到返回辦公室的員工人數穩步增加，出差次數也有所增加。最後，對於第一季度，我們新收購的 Dog Food Advisor 通過我們的第三個收入來源寵物食品和零食貢獻了 140 萬美元的收入

Turning to expenses during the first quarter. Cost of revenue, excluding depreciation and amortization, was $1 million in Q1 '23 or 5% of revenue compared to $0.8 million or 8% of revenue in Q1 '22. The dollar amount increase was a direct result of increased demand, driving incremental payment processing fees and background check costs via increase in pet parent activity and pet caregiver applications. Nevertheless, cost of revenue decreased as a percentage of revenue as our technology costs scale with revenue. We are demonstrating incredible control over our variable and fixed costs and plan to continue our focus on cost control measures for the remainder of '23. Platform operations and support expense was $3.2 million in Q1 2023 or 15% of revenue compared to $2.6 million or 27% of revenue in Q1 '22.

轉向第一季度的支出。收入成本（不包括折舊和攤銷）在 23 年第一季度為 100 萬美元，佔收入的 5%，而 22 年第一季度為 80 萬美元，佔收入的 8%。美元金額的增加是需求增加的直接結果，通過增加寵物父母活動和寵物護理人員的申請，推動了支付處理費和背景調查成本的增加。儘管如此，由於我們的技術成本與收入成比例，收入成本佔收入的百分比有所下降。我們正在展示對可變成本和固定成本的難以置信的控制，併計劃在 23 年的剩餘時間內繼續關注成本控制措施。 2023 年第一季度平台運營和支持費用為 320 萬美元，佔收入的 15%，而 2022 年第一季度為 260 萬美元，佔收入的 27%。

While there has been an increase in expense in dollar terms year over year, this increase has been principally driven by personnel-related compensation costs and stock compensation expense. However, platform operations and support expenses are approximately half as a percentage of revenue as a result of our platform scale and operational excellence.

雖然以美元計算的費用同比有所增加，但這一增長主要是由與人員相關的薪酬費用和股票薪酬費用推動的。然而，由於我們的平台規模和卓越運營，平台運營和支持費用約佔收入的一半。

Sales and marketing expense was $13.3 million in Q1 '23 or 64% of revenue compared to 63% of revenue in Q1 2022. We continue to strategically invest dollars in partnerships, new product initiatives and launches, and general marketing spend in order to capture net new pet parents and cross-sell them complementary platform offerings within the Wag! ecosystem. However, as seen by a flat percentage of revenue year over year, we remain judicious with spend.

23 年第一季度的銷售和營銷費用為 1330 萬美元，佔收入的 64%，而 2022 年第一季度佔收入的 63%。我們繼續在合作夥伴關係、新產品計劃和發布以及一般營銷支出方面進行戰略性投資，以獲取淨收入新的寵物父母並在 Wag! 中交叉銷售互補平台產品！生態系統。然而，從同比收入的持平百分比來看，我們在支出方面仍然保持審慎。

G&A expense was $5 million in Q1 '23 or 24% of revenue compared to $2.4 million or 25% of revenue in Q1 '22. The dollar amount increase in G&A expense is driven by personnel-related compensation costs and stock compensation expense as we hire and retain key talent. M&A-related costs and public company compliance, including expenses related to the compliance with the SEC and NASDAQ including legal, audit, and consulting fees.

G&A 費用在 23 年第一季度為 500 萬美元，佔收入的 24%，而 22 年第一季度為 240 萬美元，佔收入的 25%。 G&A 費用的美元數額增加是由我們僱用和留住關鍵人才時與人員相關的薪酬成本和股票薪酬費用推動的。與併購相關的成本和上市公司合規性，包括與美國證券交易委員會和納斯達克合規性相關的費用，包括法律、審計和諮詢費用。

That being said, G&A expense as a percentage of revenue is flat compared to a year ago even with public company compliance costs illustrated by our ability to scale to date and into the future.

話雖這麼說，G&A 費用佔收入的百分比與一年前相比持平，即使上市公司合規成本由我們迄今為止和未來的擴展能力所證明。

Adjusted EBITDA which is a key profitability measure that we use to manage the business improved from $1.7 million to an adjusted EBITDA loss of $0.4 million. This compares to adjusted EBITDA loss of $2.1 million in Q1 '22. To put that into perspective, adjusted EBITDA margin improved approximately 20% from minus 21.8% in Q1 '22 to minus 1.9% in Q1 '23. Our focus for the remainder of '23 is crossing the line to adjusted EBITDA profitability.

調整後的 EBITDA 是我們用來管理業務的一項關鍵盈利能力指標，從 170 萬美元減少到 40 萬美元的調整後 EBITDA 虧損。相比之下，22 年第一季度調整後的 EBITDA 損失為 210 萬美元。從這個角度來看，調整後的 EBITDA 利潤率從 22 年第一季度的負 21.8% 提高了約 20% 至 23 年第一季度的負 1.9%。我們在 23 年剩餘時間裡的重點是跨越調整後的 EBITDA 盈利能力。

Turning to our balance sheet. We ended the first quarter with approximately $33 million in cash, cash equivalents, and accounts receivable. Our balance sheet remains strong in the context of our operating cash use and puts us in a comfortable position to fund our growth objectives while also maintaining flexibility to pursue strategic M&A when we believe opportunity aligns with our goals.

轉向我們的資產負債表。第一季度結束時，我們擁有大約 3300 萬美元的現金、現金等價物和應收賬款。我們的資產負債表在我們的經營現金使用情況下保持強勁，使我們能夠輕鬆地為我們的增長目標提供資金，同時在我們認為機會與我們的目標一致時保持靈活性以進行戰略併購。

Moving to our guidance for '23. As Garrett mentioned, we are thrilled with another quarter of impressive growth. And as a result, we are raising the full-year '23 guidance previously provided on our fourth quarter '22 call.

轉到我們的 23 年指南。正如加勒特所提到的，我們對又一個季度令人印象深刻的增長感到興奮。因此，我們提高了之前在 22 年第四季度電話會議上提供的 23 年全年指導。

For the full-year '23, we now expect total revenue in the range of $80 million to $84 million, an increase of 46% to 53% year over year and an 8% improvement versus our prior forecast at the midpoint of the range.

對於 23 年全年，我們現在預計總收入在 8000 萬美元到 8400 萬美元之間，同比增長 46% 到 53%，比我們之前在該範圍中點的預測提高 8%。

Adjusted EBITDA in the range of $0 million to $1 million, a 150% improvement versus the prior forecast at the midpoint of the range. The forecast incorporates our internal target of the rule of 50, meaning revenue growth plus adjusted EBITDA margin north of 50% for the full year. With our updated full-year guidance, we're projecting revenue growth of 50%-plus year over year and adjusted EBITDA margins of 1%-plus. This range will allow us comfortably to meet our projected revenue targets and maintain a profitable growth trajectory.

調整後的 EBITDA 在 000 萬美元至 100 萬美元的範圍內，與先前預測的範圍中點相比提高了 150%。該預測結合了我們 50 法則的內部目標，這意味著全年收入增長加上調整後的 EBITDA 利潤率超過 50%。根據我們更新的全年指引，我們預計收入同比增長 50% 以上，調整後的 EBITDA 利潤率將超過 1%。這一範圍將使我們能夠輕鬆實現預期的收入目標並保持盈利增長軌跡。

Our financial guidance includes the following considerations. Severe weather affects service demand and holidays drive incremental overnight versus daytime service demand. Going forward, we expect to skew to overnight and daytime services depending on summer and holidays, most likely in Q2 and Q4. Pet adoption during the holidays also affects at insurance penetration and demand for wellness plans.

我們的財務指南包括以下考慮因素。惡劣的天氣會影響服務需求，假期會推動夜間服務需求與白天服務需求的增長。展望未來，我們預計將根據夏季和節假日偏向夜間和日間服務，最有可能在第二季度和第四季度。假期期間的寵物收養也會影響保險深度和對健康計劃的需求。

Going forward, we expect seasonal strength in Q4 and Q1 for wellness. We anticipate that continued growth in the pet industry, driven by factors such as rising pet ownership, pet insurance penetration, and increasing demand for premium pet products and services will have a positive impact on our financial performance in '23, including on our entrance to pet food and treats. General trends related to the state of the economy, interest rates, and consumer confidence, we have factored in potential risks and opportunities related to these macroeconomic factors in order to accurately forecast our financial performance.

展望未來，我們預計第四季度和第一季度的健康季節性強勢。我們預計，在寵物擁有量增加、寵物保險普及率上升以及對優質寵物產品和服務的需求增加等因素的推動下，寵物行業的持續增長將對我們 23 年的財務業績產生積極影響，包括我們進入寵物食品和零食。與經濟狀況、利率和消費者信心相關的總體趨勢，我們已將與這些宏觀經濟因素相關的潛在風險和機遇考慮在內，以便準確預測我們的財務業績。

We recognize that there may be potential risk to our financial performance in '23, such as disruptions to global supply chains, changes in consumer behavior due to unexpected events such as delayed or lower-than-expected return to office, digital and performance marketing trends, the potential impact of AI, and our ability to expand through partnership.

我們認識到我們在 23 年的財務業績可能存在潛在風險，例如全球供應鏈中斷、消費者行為因意外事件（如延遲或低於預期返回辦公室）、數字和績效營銷趨勢而發生變化、人工智能的潛在影響，以及我們通過合作夥伴關係進行擴張的能力。

In summary, our strong Q1 '23 results demonstrate our ability to execute and achieve impressive growth in a tough macroeconomic backdrop as we lean into the fastest-growing sector categories within the pet care market that deliver the most value to pet parents and to shareholders.

總而言之，我們在 23 年第一季度的強勁業績表明，我們有能力在艱難的宏觀經濟背景下執行並實現令人印象深刻的增長，因為我們傾向於寵物護理市場中增長最快的行業類別，為寵物父母和股東帶來最大價值。

We remain focused on disciplined operational excellence and delivering shareholder value and achieving profitability for the fiscal year '23, while delivering targeted 50% year-over-year growth.

我們仍然專注於紀律嚴明的卓越運營，為股東創造價值，並在 23 財年實現盈利，同時實現 50% 的同比增長目標。

And with that, we now welcome Q&A.

因此，我們現在歡迎問答。

(Operator Instructions) Matt Koranda, ROTH MKM.

（操作員說明）Matt Koranda，ROTH MKM。

Just wanted to see if you could touch on the pretty large acceleration in platform participants that you saw during the quarter. Just any more color on where you're seeing success in acquiring participants. Any commentary on sort of the balance between pet parents and carryovers on the platform? It was helpful that the demand on the carryover side is really strong, but just maybe unpack the large increase for us on a quarter-over-quarter basis?

只是想看看您是否可以談談您在本季度看到的平台參與者的相當大的加速。只是在您看到成功吸引參與者的地方有更多顏色。對平台上寵物父母和遺留物之間的平衡有何評論？結轉方面的需求真的很強勁，這很有幫助，但也許只是在季度環比的基礎上為我們解開大幅增長？

Yes. Happy to hear, Matt. It's Garrett. Great to hear from you.

是的。很高興聽到，馬特。是加勒特。很高興聽到你的消息。

Taking a step back, we saw 611,000 platform participants in Q1, which is about 88% year-over-year growth. We saw that across the platform. We saw some services growth. We saw some pet food and treat demand, and then we obviously saw significant wellness demand equally spread alongside the revenue beat proportionally.

退後一步，我們在第一季度看到 611,000 名平台參與者，同比增長約 88%。我們在整個平台上都看到了這一點。我們看到了一些服務增長。我們看到了一些寵物食品和零食需求，然後我們顯然看到了顯著的健康需求與收入成比例地平均分佈。

As a reminder, we try to -- we really do spend a lot of time managing the supply and demand equilibrium services. We really don't want it to get out of balance. Otherwise, it become -- give real problems on the demand or the supply side. So really no imbalance or nothing different than prior quarters in terms of caregivers. I think we called this out in Q4 that Q4 was going to be the most seasonal in terms of services and why you saw a deceleration in Q4 and then a reacceleration in Q1. Hopefully, that helps.

提醒一下，我們嘗試 - 我們確實花費了大量時間來管理供需平衡服務。我們真的不希望它失去平衡。否則，它會成為——給需求或供應方帶來真正的問題。因此，就護理人員而言，確實沒有失衡或與前幾個季度沒有什麼不同。我認為我們在第 4 季度提出了這一點，即第 4 季度在服務方面將是最具季節性的，以及為什麼您會在第 4 季度看到減速然後在第 1 季度重新加速。希望這會有所幫助。

Yes. Great. And then on wellness side, just I mean, very strong growth. Curious if you have any more commentary on just the key drivers of wellness revenue this quarter. How do you expect that to trend for the rest of the year in the context of the guidance that you provided? Just sort of help us understand different pockets of wellness revenue that you have. Obviously, the insurance marketplace likely being the largest but just -- how is the -- if you can touch on sort of how the wellness plan growth is unfolding versus your expectations sort of the other components around there that would be great.

是的。偉大的。然後在健康方面，我的意思是，增長非常強勁。想知道您是否對本季度健康收入的主要驅動因素有更多評論。根據您提供的指導，您預計今年剩餘時間的趨勢如何？只是幫助我們了解您擁有的不同健康收入來源。顯然，保險市場可能是最大的，但如果你能談談健康計劃的增長是如何展開的，而不是你對周圍其他組成部分的期望，那就太好了。

Yes, 100%. So wellness, as a reminder, is a few buckets of products. It's things like wellness plans. It's our pet insurance comparison marketplace. It's 24/7 expert pet advice.

是的，100%。提醒一下，健康就是幾桶產品。這就像健康計劃。這是我們的寵物保險比較市場。這是 24/7 專家寵物建議。

A lot of that is going to be in terms of Q1 and what you'll see kind of throughout the rest of the year. It's going to be just a function of seasonality. Q1, you saw a significant amount of new pets adopted as part of the holidays in December. And so we saw that kind of demand spike early in Q1.

其中很多將與第一季度以及您將在今年餘下時間看到的情況有關。這將只是季節性的函數。 Q1，在 12 月的假期中，您看到了大量新寵物被收養。因此，我們在第一季度初看到了這種需求激增。

I think we'll see some kind of taper off events and normalization in Q2, Q3 and then probably another reacceleration in Q4, specifically within pet insurance and wellness plans. And again, I think we're really thinking about this year as 50% year-over-year revenue growth for the totality of the year and then really focused on EBITDA margins this year, so targeting a 1% plus EBITDA margin, which gives us a guidance of 0 to 1. So I think we're going to be really thinking about how we manage the bottom just as much we manage the top. Hopefully it answers your question. We do expect some seasonality in wellness in Q1 and Q4.

我認為我們將在第二季度、第三季度看到某種逐漸減少的事件和正常化，然後可能在第四季度再次加速，特別是在寵物保險和健康計劃中。再一次，我認為我們真的在考慮今年全年收入同比增長 50%，然後今年真正關注 EBITDA 利潤率，因此目標是 EBITDA 利潤率加 1%，這給我們的指導是 0 到 1。所以我認為我們將真正考慮如何管理底部，就像我們管理頂部一樣。希望它能回答你的問題。我們確實預計第一季度和第四季度的健康狀況會出現一些季節性。

Okay. Fair enough. That makes sense. I'll just sneak one more in before I jump back in the queue here, guys. Just on the Dog Food Advisor acquisition, it looks like it's running nicely. Curious if you maybe can talk about if you're seeing anything in the way of synergies from that acquisition and bringing it on to a wide platform, just any early commentary as to how it's trending.

好的。很公平。這就說得通了。伙計們，在我跳回到這裡的隊列之前，我會再偷偷進來一次。就收購 Dog Food Advisor 而言，它看起來運行良好。好奇你是否可以談談你是否看到了這次收購的協同效應並將其帶到一個廣泛的平台上，只是關於它的趨勢的任何早期評論。

Yes, absolutely. So we're thrilled to be the owners of dogfoodadvisor.com, which we believe is the number one marketplace for pet food and treat advice on the Internet. Huge thanks to Dr. Mike Sagman who started that website many, many years ago and taking care of its community. We're early in our adventure of recognizing synergies, building out the platform, and accelerating the growth in that business, but we're certainly ahead of, I think, our internal expectations if you look at Q1's performance.

是的，一點沒錯。因此，我們很高興成為 dogfoodadvisor.com 的所有者，我們相信它是互聯網上寵物食品和治療建議的第一大市場。非常感謝 Mike Sagman 博士，他在許多年前創建了該網站並照顧其社區。我們在認識到協同效應、構建平台和加速該業務增長的冒險中處於早期階段，但我認為，如果你看一下第一季度的表現，我們肯定領先於我們的內部預期。

The really nice thing about Dog Food Advisor which validates our thesis is it is a premium pet parent, the most popular products on Dog Food Advisor who are really seeking out are things like human-grade dog food, which obviously is very complementary to things like Wag!'s services or just seeking out advice on best treats. And they're looking at more expensive treat options than maybe the standard pet parent. So not to say there isn't demand across but certainly validates our thesis that premium pet parents [doing] research on their pets' food, and they're going to Dog Food Advisor for that research.

驗證我們論點的 Dog Food Advisor 的真正好處是它是優質寵物父母，Dog Food Advisor 上最受歡迎的真正尋找的產品是人類級狗糧之類的東西，這顯然與諸如此類的東西非常互補Wag! 的服務或只是尋求有關最佳款待的建議。他們正在尋找比標準寵物父母更昂貴的治療選擇。因此，並不是說沒有需求，但肯定驗證了我們的論點，即高級寵物父母 [正在] 研究他們的寵物食品，他們會去狗糧顧問進行這項研究。

So obviously early for us in terms of expanding via CRM, expanding via referral offers, expand via bundles, but we're in that journey right now, and I think we're excited to continue to lean in.

因此，在通過 CRM 進行擴展、通過推薦報價進行擴展、通過捆綁進行擴展方面，我們顯然還處於早期階段，但我們現在正處於這一旅程中，我認為我們很高興能繼續向前邁進。

Okay. Super. Great job, guys, this quarter, and I'll jump back in queue.

好的。極好的。幹得好，伙計們，這個季度，我會跳回隊列。

Tom White, D.A. Davidson.

湯姆·懷特，檢察官戴維森。

Hey. This is Wyatt Swanson on for Tom. Thanks for taking our questions. I just want to talk a little bit more about category share trends so far this year. Could you give us a little bit better sense of what you see as the key investments needed to further improve your category position and how investors should think about the growth output or the yield from those investments looking out over the medium to long-term?

嘿。這是湯姆的懷亞特斯旺森。感謝您回答我們的問題。我只想多談談今年到目前為止的品類份額趨勢。您能否讓我們更好地了解您認為進一步改善您的類別地位所需的關鍵投資，以及投資者應該如何考慮中長期的增長產出或這些投資的收益率？

Yes. So right now, I think we operate in a couple of different interesting sectors of pet spend -- and great to hear from you and thanks for the time. The first being obviously services, kind of what we are most famous for, things like on-demand dog walking, on-demand drop-ins, sitting and boarding, training, et cetera. Second will be wellness, which we talked about earlier, things like wellness plans and pet insurance comparison and everything else and, most recently, pet food and treats.

是的。所以現在，我認為我們在寵物消費的幾個不同有趣領域開展業務 - 很高興收到您的來信並感謝您抽出寶貴時間。第一個顯然是服務，這是我們最著名的服務，例如按需遛狗、按需接送、就座和寄宿、培訓等。其次是健康，我們之前談到過，比如健康計劃和寵物保險比較以及其他一切，最近還有寵物食品和零食。

And I think what you're going to see from Wag! and management specifically is we're going to lean into the fastest-growing secular pet trends. So where do we see the most kind of TAM upside? Where are pet parents naturally pulling us forward and where are we then going to find the best ROAS and the best ROI kind of on time and R&D.

我想你會從 Wag 看到什麼！和管理特別是我們將傾向於增長最快的世俗寵物趨勢。那麼我們在哪裡可以看到最大的 TAM 上行空間？寵物父母自然會在哪裡推動我們前進，然後我們將在哪裡找到最佳的 ROAS 和最佳的 ROI 以及時間和研發。

So, so far, because of kind of the slow back to work and kind of people returning to normal slowly but truly over the last three years and just generally pet trends, we have found those to be wellness, pet food and treats, and services probably in some of that order. So we're investing in all thoughtfully, but we're really leaning in at any given time into what we think is the fastest-growing category.

所以，到目前為止，由於在過去三年中恢復工作的速度有點慢，人們慢慢但真正地恢復正常，而且一般來說都是寵物趨勢，我們發現這些是健康、寵物食品和零食以及服務可能是按照這個順序。因此，我們正在深思熟慮地投資於所有領域，但我們確實在任何時候都傾向於進入我們認為增長最快的類別。

And hopefully that answers your question. We think that time is kind of dynamic. There's a best time at any given time.

希望這能回答您的問題。我們認為時間是動態的。任何給定時間都有最佳時間。

Got it. Okay. That's very helpful. And then just related to back to work. We noticed that the barometer is actually starting to pick up again over the past few weeks. Can you maybe talk about whether that's in line with what you've seen in terms of demand so far in the second quarter and where you foresee that going?

知道了。好的。這很有幫助。然後只是與回去工作有關。我們注意到，過去幾周晴雨表實際上又開始回升。您能否談談這是否符合您在第二季度到目前為止所看到的需求以及您預見的情況？

I mean, look, I really have been trepidatious to give my opinion or thoughts on where people will land with back to office. I think it has been three years now almost of us saying we're going to go back to normal and not really going back to normal. So I'd hate to say what I think is going to happen.

我的意思是，你看，我真的很膽怯地發表我的意見或想法，讓人們回到辦公室。我認為已經三年了，幾乎我們中的大多數人都在說我們將恢復正常，但並沒有真正恢復正常。所以我不想說我認為會發生什麼。

In general, our expectation is a very slow and steady return to office, led by red states, frankly, like more open states. So let's say things like Texas, Florida, et cetera, and probably the lagging states will be places like New York and California. So we're being really conservative about our back-to-work assumptions. And, look, if that accelerates the upside, and I think, certainly, you can -- the Kastle back-to-work barometer is a good indication of where people are and what's happening. But I'd be -- I would not want to say that it's definitely going to get to 80% any time soon. Hope that it's helpful.

總的來說，我們的期望是在紅州的帶領下，以非常緩慢而穩定的方式重返辦公室，坦率地說，就像更開放的州一樣。因此，假設像德克薩斯州、佛羅里達州等，落後的州可能是紐約和加利福尼亞等地。因此，我們對重返工作崗位的假設非常保守。而且，看，如果這加速了上行，我認為，當然，你可以——Kastle 重返工作晴雨表很好地表明了人們的位置和正在發生的事情。但我會——我不想說它肯定會很快達到 80%。希望對您有所幫助。

Yes, that's great. Thank you very much.

是的，那太好了。非常感謝。

Jack Cole, Craig-Hallum Capital Group.

克雷格-哈勒姆資本集團的傑克科爾。

This is Jack, on for Jeremy. Congrats on a great quarter and thanks for taking the questions. My first one would be, so it sounds like demand to be at PCG still remains strong. Could you talk a little bit about the rationale behind the Wag! business as an option for PCG, the new $199 option? The way I read it, it looks like only new applicants can currently use this option. Just any color on how popular it has been so far and when you plan on offering it as an upgrade for current PCGs?

這是傑克，傑里米。祝賀一個偉大的季度，感謝您提出問題。我的第一個是，所以聽起來對 PCG 的需求仍然強勁。您能談談 Wag! 背後的基本原理嗎？業務作為 PCG 的選項，新的 199 美元選項？在我看來，目前似乎只有新申請人可以使用此選項。到目前為止它有多受歡迎以及您計劃何時將其作為當前 PCG 的升級提供？

Yes, and thanks for the time, Jack. So look, we are really interested in building great tools for caregivers to build their business. That's how I think about it, right? It's really what tooling can we give to caregivers to build incredible businesses on Wag! And so you've seen us over the last year or two roll out extensive new services and options, right? 20-, 30-, and 60-minute drop-in, digital or in-person training, we're kind of at the forefront of, we think, services product development. Do you want to see what our competitors are going to do next year? Look at what we did last year.

是的，謝謝你抽出時間，傑克。所以看，我們真的很想為看護人打造出色的工具來建立他們的業務。我就是這麼想的，對吧？這真的是我們可以為護理人員提供什麼樣的工具來在 Wag 上建立令人難以置信的業務！因此，您已經看到我們在過去一兩年推出了廣泛的新服務和選項，對嗎？ 20 分鐘、30 分鐘和 60 分鐘的現場、數字或面對面培訓，我們認為我們處於服務產品開發的最前沿。你想看看我們的競爭對手明年會做什麼嗎？看看我們去年做了什麼。

So generally, Wag! Pro fits into that bucket. It fits into our ability to enable caregivers to have great tools to scale the business. And I think we're still early on in that journey. I think we're far from done in terms of empowering caregivers with things they can do on the platform.

所以一般來說，Wag！ Pro 適合那個桶。它符合我們使護理人員能夠擁有擴展業務的強大工具的能力。而且我認為我們仍處於該旅程的早期階段。我認為，在為看護者提供他們可以在平台上做的事情方面，我們還遠遠沒有完成。

In terms of what's next, we're experimenting with it with new caregivers. We'll probably test it with existing caregivers, but it's really just one of our thoughtful rollouts for the community.

至於下一步，我們正在對新的看護者進行試驗。我們可能會在現有的護理人員中對其進行測試，但這實際上只是我們為社區推出的一項深思熟慮的舉措。

Great. That's helpful color. And then following-up on the last question, I guess, how do you guys think about just a hybrid work environment overall? I mean, it seems to be where most workplaces and states are trending right now. I mean, does that hurt or benefit your platform overall?

偉大的。這是有用的顏色。然後跟進最後一個問題，我想，你們如何看待整體的混合工作環境？我的意思是，這似乎是大多數工作場所和州現在的趨勢。我的意思是，這對您的平台整體而言是有害還是有益？

I mean, frankly, we would -- hybrid is great. Like we just need you in the office once or twice a week. That's how often the average pet parent is using Wag!, right? So we're not looking for -- we're not expecting, frankly, a four- or five-day work week in the office anytime soon. What we're expecting is a slow and steady Monday, Wednesday or Tuesday, Thursday return to office.

我的意思是，坦率地說，我們會——混合動力車很棒。就像我們每週只需要你在辦公室一兩次。這就是一般寵物父母使用 Wag! 的頻率，對吧？所以我們不是在尋找 - 坦率地說，我們不希望很快在辦公室每週工作四天或五天。我們期待的是周一、週三或週二、週四緩慢而穩定地返回辦公室。

Those are the day you're leaving your pup or furry friend behind for six, 10, 12 hours a day. And those are the days you end up using a Wag! service, doing research on your pet's food or updating your pet insurance plan, et cetera, et cetera. So again, our assumptions are we're slow and steady, and we don't need you every day.

那些是你每天離開你的小狗或毛茸茸的朋友 6、10、12 小時的日子。那些是您最終使用 Wag 的日子！服務、研究您的寵物食品或更新您的寵物保險計劃等等。再說一次，我們的假設是我們緩慢而穩定，我們不需要每天都需要你。

Got it. And then just last one for me. You guys mentioned the headwinds seen from weather in California. I guess more broadly, how's the services segment performing coastal more urban areas versus suburban areas maybe? Is it still highly concentrated in the urban areas or spreading a bit more to the suburbs, just what you're seeing regionally?

知道了。然後給我最後一個。你們提到了加利福尼亞天氣的逆風。我想更廣泛地說，與郊區相比，服務部門在沿海更多城市地區的表現如何？它仍然高度集中在城市地區，還是更多地向郊區擴散，就像你在區域上看到的那樣？

Yes, Adam, Why don't I let Adam take that. He spends the most time thinking about kind of the geographies. Adam, if you want to take that one?

是的，亞當，為什麼我不讓亞當接受它。他花最多時間思考某種地理。亞當，你要不要那個？

Sure, sure. So certainly, there was an effect with all of the California storms in Q1, had an effect on service volume. Basically, less people in office, less people traveling, equates to less services. In terms of the go forward, I'd really break it down along the lines that Garrett said earlier, the back-to-work barometer is really going to be the driving force for the dog walking business.

一定一定。因此，可以肯定的是，第一季度的所有加利福尼亞風暴都產生了影響，對服務量產生了影響。基本上，辦公室裡的人少，出差的人少，就等於服務少。就前進而言，我真的會按照加勒特之前所說的方式進行分解，重返工作晴雨表確實將成為遛狗業務的驅動力。

In terms of how services are split out between Tier 1, Tier 2, Tier 3 markets, it's not to say that the gigantic majority of the business is in New York, LA, San Francisco, there really is a long tail to where these services are being performed. The bigger driver is really what does the return-to-office trend look like over the next two years. And I think it's fair to say we all thought that that was going to trend -- we'd be about 50% in terms of Kastle back to work by now. So I think our go-forward expectations are that's just going to pick up very moderately over the next 24 months.

就服務在一級、二級、三級市場之間的分配方式而言，並不是說絕大部分業務都在紐約、洛杉磯、舊金山，這些服務確實有很長的尾巴正在執行。更大的驅動因素實際上是未來兩年重返辦公室的趨勢。我認為可以公平地說，我們都認為這會成為趨勢——就 Kastle 而言，我們現在大約有 50% 可以重返工作崗位。所以我認為我們的前瞻性預期是在接下來的 24 個月內會非常適度地回升。

Great. That's it for me. Thanks, guys, and congrats again.

偉大的。對我來說就是這樣。謝謝，伙計們，再次恭喜。

(Operator Instructions) Brian Dobson, Chardan Capital Markets.

（操作員說明）Chardan Capital Markets 的 Brian Dobson。

Hi. Thanks very much. So the pricing power in the subscription segment is impressive, considering that you saw a greater penetration during the quarter. What does that tell you about where pricing could ultimately go better?

你好。非常感謝。因此，考慮到您在本季度看到了更大的滲透率，訂閱領域的定價能力令人印象深刻。這告訴你什麼定價最終可以更好？

Hey, Brian, I'll take this one, even though Adam is arguably the most passionate about Wag! Premium in general. I think if you -- so, yes, let me take a step back. Great question, thanks for it.

嘿，Brian，我要這個，儘管 Adam 可以說是最熱衷於 Wag 的人！一般溢價。我想如果你——那麼，是的，讓我退後一步。很好的問題，謝謝。

We certainly believe and are surprised, frankly, about the fact that Wag! Premium penetration actually accelerated in Q1 to 55%. And that's with the $14.99 Wag! Premium monthly fee rolled out to 100%. So frankly, we took it by surprise. We are kind of sensitive to the fact that the market is kind of very dynamic right now in terms of the macro. And I think generally consumers are feeling significant pricing pressure.

坦率地說，我們當然相信 Wag！保費滲透率實際上在第一季度加速至 55%。這就是 14.99 美元的 Wag！高級月費推出至 100%。坦率地說，我們對此感到驚訝。我們對這樣一個事實很敏感，即就宏觀而言，市場目前非常活躍。而且我認為消費者普遍感受到了巨大的定價壓力。

So I don't think really our goal is maxing out or taking 100% of our pricing power and putting it to work right now. What we're really focused on is the long-term goal of building out this platform.

所以我不認為我們的目標真的是最大限度地發揮或發揮我們 100% 的定價能力並立即投入使用。我們真正關注的是構建這個平台的長期目標。

So what other benefits can we give to the Wag! Premium subscribers? What are ways can be tied together the way you shop for pet food or the way you buy pet treats or how you buy pet insurance, and how could make that all part of Wag! Premium?

那麼我們還能給 Wag 什麼好處呢！高級訂戶？有什麼方法可以將您購買寵物食品的方式或購買寵物零食的方式或購買寵物保險的方式聯繫在一起，以及如何使它們成為 Wag 的所有部分！優質的？

I think Adam alluded to it in his remarks specifically around, hey, we now have enabled people to get a discount on their first box of premium pet food or where they get recall alerts and kind of save their pets live if the food's bad. So I think we're spending most of our time there. But to answer your question, like, yes, it certainly was surprising to us. We did not expect this level of acceleration in the quarter.

我認為亞當在他的評論中特別提到了這一點，嘿，我們現在已經讓人們能夠在他們的第一盒優質寵物食品上獲得折扣，或者他們可以在他們收到召回警報的地方獲得召回警報，並在食物變質時拯救他們的寵物。所以我認為我們大部分時間都花在那裡。但要回答你的問題，就像，是的，這肯定讓我們感到驚訝。我們沒想到本季度會出現這種加速水平。

Great. Thanks. And can you give us any color on what the contribution might be from your partnership with Paw Protect and how you see that evolving over the next 12 months?

偉大的。謝謝。您能否告訴我們您與 Paw Protect 的合作可能做出的貢獻，以及您如何看待未來 12 個月的發展？

I couldn't be more excited about the partnership with pawprotect.com, which we believe is an industry-first brand and experience for pet parents. Taking a step back, the reason we're so excited about the exclusive partnership is, one, it's a product that's highly differentiated in the market. Two, it's a product that pet parents frankly need and even pet caregivers needed. And three, we obviously believe it's a great fit for our audiences.

我對與 pawprotect.com 的合作感到非常興奮，我們相信這是行業第一的品牌和寵物父母的體驗。退後一步，我們對獨家合作夥伴關係如此興奮的原因之一是，它是一種在市場上高度差異化的產品。第二，它是寵物父母坦誠需要的產品，甚至是寵物護理人員需要的產品。第三，我們顯然相信它非常適合我們的觀眾。

And so still early innings on where we expect that to be, Brian. We certainly think it will help continue to power our wellness growth and continuous upside there. We haven't really kind of split out how we're thinking about that business, but generally very excited about the opportunity to promote it and integrate it.

因此，布賴恩，我們仍處於預期的早期階段。我們當然認為這將有助於繼續推動我們的健康增長和持續增長。我們還沒有真正分清我們是如何考慮這項業務的，但總體上對推廣和整合它的機會感到非常興奮。

Great. Thanks. And congratulations on the beat and raise.

偉大的。謝謝。並祝賀你擊敗並加註。

Jason Helfstein, Oppenheimer.

傑森赫爾夫斯坦，奧本海默。

Hey, guys, multitasking. So going to do my best, So I just want to make sure I got this. So the increase in platform participants from the 434,000 to 611,000, so how much of that was seasonality versus -- was any of that from Dog Advisor versus just like organic growth?

嘿，伙計們，多任務處理。所以我會盡力而為，所以我只想確保我得到了這個。因此，平台參與者從 434,000 人增加到 611,000 人，那麼其中有多少是季節性的——是來自 Dog Advisor 還是有機增長？

Yes, the majority of that is going to be from the existing lines of business, small amount from dogfoodadvisor.com. We didn't separate it out, but it's mostly organic. Majority organic.

是的，其中大部分將來自現有的業務線，少量來自 dogfoodadvisor.com。我們沒有把它分開，但它主要是有機的。大多數有機。

Okay. And then when we think about then -- were there any marketplace dynamics around -- I think service revenue was kind of flattish, I think, like down a little bit sequentially. How do you think about seasonality versus like just other marketplace dynamics going on or whatnot?

好的。然後，當我們考慮當時——周圍是否有任何市場動態時——我認為服務收入有點持平，我認為，就像一點點連續下降。您如何看待季節性與其他正在發生或類似的市場動態？

Services specifically, we think, is a function of weather. Last thing people want, Jason, and you probably feel this pain, is a wet dog especially when you're not home, especially wet dog running around and making him herself comfortable on your couch. So bad weather in Q1 really affects dog walking, which, as you know, is an important product in our services ecosystem. We don't expect that trend to continue.

我們認為，具體而言，服務是天氣的函數。傑森，人們最不想要的就是一條濕狗，尤其是當你不在家的時候，尤其是濕狗跑來跑去，讓他自己舒服地坐在你的沙發上。所以第一季度的惡劣天氣確實影響了遛狗，正如你所知，這是我們服務生態系統中的重要產品。我們預計這種趨勢不會持續下去。

We expect going forward some resilience and some acceleration. I would also say that, in Q4, you don't see that as much an effect because it's the sitting and boarding time period where like the dog is with you or the cat is with you 24/7.

我們預計未來會有一些彈性和一些加速。我還要說的是，在第 4 季度，你看不到那麼大的影響，因為這是坐著和登機的時間段，就像狗和你在一起或貓 24/7 和你在一起。

Right. More or of a mixed shift to stay in the morning --

正確的。更多或混合輪班留在早上 -

Yes. People still travel. So Q2 should be better generally. We expect, hopefully, inclement weather calm itself. Hopefully, you've been following it. It has just been brutal on the coasts.

是的。人們仍在旅行。所以Q2總體上應該會好一些。我們希望惡劣的天氣能夠平靜下來。希望您一直在關注它。它剛剛在海岸上變得殘酷。

Yes. And then when you think about pet insurance, just broadly, what do you think you guys and what actually are you trying to do differently than the other solutions that happen in market?

是的。然後，當您考慮寵物保險時，從廣義上講，你們怎麼看，你們實際上在嘗試做哪些與市場上出現的其他解決方案不同的事情？

And what are you referring to, Jason? Is it the marketplace in general.

你指的是什麼，傑森？是一般的市場嗎？

Well, just I mean like what do you believe you're doing differently, right? I mean Trupanion has been out there for a while. There has been other solutions like -- obviously, you're showing pretty good growth in the wellness business. I mean, what do you think you're doing different that consumers are really finding appealing?

好吧，我的意思是說你認為自己的做法有所不同，對吧？我的意思是 Trupanion 已經存在了一段時間。還有其他解決方案，比如 - 顯然，您在健康業務方面表現出相當不錯的增長。我的意思是，您認為您的做法有哪些不同之處，消費者才真正覺得有吸引力？

Yes. There's a lot. So let me -- let me break out what I -- and become the value found and our customers certainly share with us. One is we hands down believe we have the best comparison engine for pet insurance products and wellness plans. Like if you're shopping for pet insurance, we believe that we have the best way to shop for that. We have the best matching. We have the best reviews. We have the best content. We get the best UGC, like we can generally make sure you're getting the right product for your pet.

是的。有很多。所以讓我——讓我打破我的想法——成為發現的價值，我們的客戶肯定會與我們分享。一是我們相信我們擁有寵物保險產品和健康計劃的最佳比較引擎。就像您要購買寵物保險一樣，我們相信我們有最好的購買方式。我們有最好的匹配。我們有最好的評論。我們有最好的內容。我們獲得最好的 UGC，就像我們通常可以確保您獲得適合您寵物的產品一樣。

And hopefully, as you know Jason, it's actually very difficult to find the right pet insurance product. Two, we can kind of think through what other things your pet is going to need, right? Like once you find pet insurance, we can really talk about the wellness plan, making sure you're getting the right food and treats just really taking care of your pet, and it's just your general pet wellness and ability to delight your pet.

希望 Jason 知道，找到合適的寵物保險產品實際上非常困難。第二，我們可以想想你的寵物還需要什麼，對吧？就像一旦您找到寵物保險，我們就可以真正談論健康計劃，確保您得到正確的食物和零食，真正照顧您的寵物，這只是您的一般寵物健康和取悅寵物的能力。

And then finally, in terms of Paw Protect, Paw Protect is incredible. It's the only, for our understanding, pet insurance product with instant pay, so no interest, no fees, you have availability of credit, like you use it with -- it's just an amazing product. So I would strongly recommend checking out pawprotect.com, but there's a bunch of these factors that combine to make shopping for pet insurance delightful with Wag!, frankly.

最後，就 Paw Protect 而言，Paw Protect 令人難以置信。據我們了解，這是唯一一款即時支付的寵物保險產品，因此沒有利息，沒有費用，您可以獲得信貸，就像您使用它一樣 - 它只是一個了不起的產品。因此，我強烈建議您查看 pawprotect.com，但坦率地說，有許多這些因素結合在一起，使 Wag! 購買寵物保險變得愉快。

And just like one last one. I mean, it does seem like against their, well, you're going to see more West Coast people going back to work some point in the second quarter and definitely in the third particularly at large tech companies. That should be a tailwind just -- from what I heard, it sounds like you're not meaningfully baking that into your full-year guidance. Is that fair?

就像最後一個一樣。我的意思是，這似乎確實與他們相反，好吧，你會看到更多的西海岸人在第二季度的某個時間點重返工作崗位，而且肯定會在第三季度重返工作崗位，尤其是在大型科技公司。這應該是一個順風——據我所知，聽起來你並沒有有意義地將其納入你的全年指導方針。這公平嗎？

That's right. We certainly hope so, but we're not basing that on the model. We're not basing the model on that assumption, frankly.

這是正確的。我們當然希望如此，但我們並不是基於模型。坦率地說，我們並沒有將模型建立在該假設之上。

Got it. Thank you very much.

知道了。非常感謝。

Thanks, Jason. Thanks for multitasking

謝謝，傑森。感謝您的多任務處理

Thank you. And this concludes the Q&A session. I'd now like to turn the call back over to Garrett Smallwood for any closing remarks.

謝謝。問答環節到此結束。我現在想將電話轉回給 Garrett Smallwood 以聽取任何結束語。

I want to thank everyone for taking the time to attend today, and please check out the updated Wag! management presentation on wag.co in the Investor Relations section. Hope you have a great rest of your day.

我要感謝大家今天抽出時間參加，請查看更新的 Wag！在投資者關係部分的 wag.co 管理介紹。希望您今天過得愉快。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。